Wal-Mart Stores, Inc. (WMT) Offers Tepid Outlook For 1Q And Fiscal Year 2016


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Wal-Mart Stores, Inc. (NYSE:WMT) provided a downbeat outlook for the first quarter, as well as, the fiscal year 2016. Though the company’s adjusted profit per share topped the Street analysts’ estimations for the fourth quarter, revenue and the outlook fell shy of the predictions.

Outlook

Wal-Mart Stores, Inc. (NYSE:WMT) provided earnings outlook of 95 cents to $1.10 a share for the first quarter, which fell short of the Street analysts’ estimations of $1.14 a share. Similarly, for the fiscal year 2016, the chain of retailer expects to deliver $4.70 – $5.05 a share, which also fell shy of the Street expectations of $5.19 a share.

The company stated that its forecast reflected additional tactical wage and training investments, as well as, incremental investments in its worldwide eCommerce initiatives, involving 26 – 29 cents a share.

4Q Results

Wal-Mart Stores, Inc. (NYSE:WMT) reported income from continuation operations of $4.966 billion, up 14.1% from $4.354 billion in the prior year quarter. Its earnings from continuing operations were $1.53 a share compared to $1.36 a share indicating 12.5% growth. Its underlying earnings were $1.61 a share, up from $1.60 a share in the year-ago quarter.

Consolidated revenue for the fourth quarter advanced 1.4% to $130.54 billion from $128.79 billion in the previous year quarter. Its total sales were $131.565 billion. On average, Wall Street analysts’ estimated earnings of $1.54 a share and revenue of $132.36 billion.

The company stated that its comp sales in the United Stated increased 1.5% in the fourth quarter. Similarly, its Neighborhood Market format’s comp sales advanced about 7.7%. Excluding fuel, Sam’s Club comp sales increased 2.0% for the fourth quarter.

Full Year Results

The company’s income from continuing operations rose 1.7% to $16.18 billion from $15.92 billion in 2013. Similarly, its earnings from continuing operations grew 3.5% to $5.05 a share from $4.88 a share in the prior year. Its underlying earnings were $5.07 a share for the fiscal year 2015.

Wal-Mart Stores, Inc. (NYSE:WMT) generated consolidated revenue of $485.7 billion for the full year, up 2% from $476.29 million. The company has returned about $7.2 billion to its shareholders by way of dividend and share buybacks. The retailer added close to 33 million square feet of space during the year.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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